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When the
Alaska Legislature set the current budget early this year, the price of oil was
sky-high and heading higher. Alaska crude peaked at nearly 150-dollars per
barrel in July. The budget was put together assuming a price of
85-dollars per barrel, but Juneau
Senator Kim Elton said last week that the price of a barrel of oil is now
hovering at a point where it may not sustain the state's present level of
spending. Alaska North Slope Crude is currently under 70-dollars per barre.

But Kodiak
Senator Gary Stevens says the state is in good shape, because of the increase
in the taxes on oil companies and months of sky-high prices:

--(Gary 140 sec"We did very well ... price of oil
has gone down.")

Though
Stevens is not up for re-election this year, half of the state's senate seats
are up for grabs. The last two years Stevens was in the leadership of a
majority coalition with the senate's Democrats. With coalition leader Lyda Green
retiring, Stevens may become Senate President - if he can put together the
right mix:

--(Gary 224 sec"Waiting to see what ... it's going
to end up here.")

Meanwhile,
Stevens says, the House and Senate Judiciary Committees continue to hold hearings
on potential collusion and price fixing in gasoline and fuel prices in the
state. He said he understands the anger of residents when the price of gasoline
goes up quickly, but fails to come down at the same rate as the price of crude.
But, he added, it's difficult to prove illegal conduct on the parts of the fuel
industry.